HomeMy WebLinkAboutItem 3c combined Continental
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500 • Facsimile: 262.502.5522
Conceptual Review | Authentix Lakeville | January 20, 2021
Narrative
INTRODUCTION
Continental 564 Fund LLC is excited to present to the City of Lakeville a concept for a Multifamily
Community on a +/- 18.16 acre tract generally located off of 210th Street slightly West of Keokuk
Avenue, with its primary entrances being situated off of 210th Street and 207th Street. The
proposed will immediately include a 288-home multifamily development, a 580-foot extension
to 207th Street, and the planning of access and infrastructure to accommodate a future assisted
living facility next door.
A. INTENT
The proposed land uses will be a welcomed addition to the area. The size and location of the
community will serve as an excellent transition between the retail on its East boundary, and
future residential along its West boundary. It also complements the existing multifamily
community to its North. A zoning amendment to “M-1” is the preferred method of entitlement
in order to provide a unique and attainable housing type that is not currently provided in the
vicinity, which would not be feasible under other residential zoning designations for several
reasons described herein.
Continental’s proposed community Authentix Lakeville, features a density of 18.2 dwelling units
per acre and inclusion of multiple principal buildings along with accessory buildings and a
complementary Clubhouse buildings on a single parcel, which allows the maintenance of
adequate area for the varying amenities proposed for the use of its residents. These amenities
include the clubhouse which is not only intended for the enjoyment of residents but also acts as
a commercial leasing office for Continental’s onsite property management team. The clubhouse
and character of other onsite amenities is detailed further in “C. Development Concept and
Character.”
The future proposed assisted living is a compatible neighboring use to Authentix Lakeville, and it
is Continental’s and the property owner’s intent to ensure all accessibility, infrastructural, and
life safety requirements are considered in the planning of both phases to promote the success
of both communities.
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500 • Facsimile: 262.502.5522
Conceptual Review | Authentix Lakeville | January 20, 2021
B. RECOGNIZABLE BENEFIT
KEOKUK AVENUE AREA BENEFITS
Authentix Lakeville will benefit the community and vicinity by offering a residential product
segment that is much needed in the area and a housing addition that will support: the City’s
population growth projections and Housing goals, existing businesses, and future commercial
development within the City of Lakeville.
The 288 new households will support a population of 520-550 people with significantly more
disposable income than their single-family counterparts. Continental estimates the total annual
expenditures per household is roughly $66,000-$67,000 and will thereby contribute roughly
$18-19 million each year to the local economy 1.
LOCAL COMMITMENT, INVESTMENT & JOB CREATION
Apartment communities represent a significant financial investment in the local economy with
short- and long-term economic benefits. Continental will have a long-term commitment and
investment to both their Authentix Lakeville community and the City of Lakeville. The total
project cost and investment is estimated at well over $40 million and the addition of 288 homes
within the proposed community will help to bolster local property tax revenue.
The construction of 288 apartment units would support 425-475 full-time construction
employees for the span of construction (approximately 27 months) and produce a considerable
amount in associated wages. Over the long term, Authentix Lakeville’s impact could support 15-
200 local jobs by way of its resident and operational spending 2.
In addition to the economic considerations, the community will result in positive progress
towards The City of Lakeville and MET Council’s common goal of providing attainable housing in
the region. The community’s adjacency to existing valuable amenities including Lake Marion and
its associated parks and trails, the Keokuk area commercial amenities, and its convenient access
to I-35 further increase the desirability of the community. Whether commuting to work,
spending a day at the beach, or taking a walk in the park with man’s best friend, quality living is
readily available to all Lakeville residents.
1 Resident Spending Analysis
2 Weareapartments.org/calculator
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500 • Facsimile: 262.502.5522
Conceptual Review | Authentix Lakeville | January 20, 2021
C. DEVELOPMENT CONCEPT AND CHARACTER
Authentix Lakeville, will Includes 288 homes within 12 residential buildings. The timeless
Architectural style matches both the character and scale of the nearby residential communities.
No building exceeds two stories, and all principal and clubhouse buildings include horizontal and
vertical articulation by way of varying façade faces at each unit and varying roof geometries
along the building’s massing. The proposed buildings offer a unique layout in the Multifamily
sector, providing direct access to each 1st floor home, and secured stairwells
for second level homes. Each unit is provided with a covered entry, adding
additional articulation and a sense of human scale to the community.
Each home, ranging from Efficiency to 3-Bedrooms (see adjacent table for
detailed quantities) offers a high percentage of glazing to promote an
abundance of natural lighting, which creates opportunities to optimize
passive solar heating and cooling systems. Coupled with high-quality roofing materials, and
vertically orientated siding, the glazing and articulation help the community blend seamlessly
into its surrounding context. All ancillary structures, including the community clubhouse, are
designed with the same quality and design language as described above.
In order to enhance the sense of place that this community will provide; several amenities are
included within the site. Among the facilities is a Community Clubhouse which includes a
community gathering room, 24-hour fitness center, kitchen, coffee bar, and resort style pool.
The gathering room and coffee/kitchen area are serviced by complementary wireless internet
service to accommodate residents in search of work from home opportunities. During warm
months, the garage-style door in the fitness center can be opened to the pool deck for an open-
air workout experience. The pool deck includes ample patio furniture with a lounge space,
grilling area, and shaded seating, which rounds-out this portion of the site as the community
Type Qty
Studio 32
1-Bedroom 112
2-Bedroom 112
3-Bedroom 32
1: Example of proposed residential building Architecture
2: Example of Proposed Residential Architecture
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500 • Facsimile: 262.502.5522
Conceptual Review | Authentix Lakeville | January 20, 2021
hub and social catalyst. The clubhouse is also home to Continental’s premiere in-house
community management team. Our management team offers resident- focused service that
meets and exceeds resident expectations. The community also features picnic areas, a car care
center, pet spa, and a pet playground.
Beyond the varying resident amenities, high quality finishes (both interior and exterior), open
space, landscaping, and a courtyard approach to community layout, connectivity is provided
throughout the site to promote further neighbor interaction.
The community will be accessible via connections at 207th and 210th Streets. Connections to the
Assisted Living phase will be provided as shown on the Concept Plan. Signage will be provided at
each entrance, to create a clear sense of entry, and transition from retail uses to a residential
neighborhood. All the residential buildings and amenities disbursed throughout the community
are accessible via a vehicular and pedestrian transportation network, designed specifically to
provide ease of access and safety to residents. Residents are provided with a mixture of both
detached garages and ample surface parking to best fit their desires.
The subject property is currently vacant, the proposed community, future phase, and park along
with their supporting improvements will provide value to the overall community by way of
increased City revenue, increased sense of community, and assisting the City in providing the
homes required to support their population growth goals. The 288 new homes, and
approximately 520-550 residents who will live there immediately upon completion of the
multifamily community will account for additional water and sewer bills, additional property tax
revenue, and additional retail and commercial income for surrounding uses (as demonstrated in
the enclosed resident spending analysis).
Continental and the property owner will work with the developer/owner of the future phase to
ensure the same values and quality are maintained throughout the development and promote a
cohesive access plan that allows safe and convenient access to both parcels.
3: Example of Authentix Community in Holland, Michigan
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500 • Facsimile: 262.502.5522
Conceptual Review | Authentix Lakeville | January 20, 2021
D. ZONING DISTRICT / FUTURE LAND USE
Authentix Lakeville is proposed to be situated upon a single parcel (Parcel ID: 224880000060).
The multifamily proposal will require a Comprehensive Plan Amendment and Zoning
Amendment as described below:
1. Comprehensive Plan: The Parcel is currently planned as Commercial, with a small portion of
High Density Residential – The proposed would require the entire parcel to be amended to
High Density Residential. As outlined in the enclosed “Lakeville Market Analysis” this
amendment is justifiable due to the existing amount of commercial land, an accelerated
decrease in demand for commercial land, as well as a strong need for the proposed housing
type.
2. Zoning Amendment: The Parcel is currently zoned as a combination of C-3 and RH-2. The
proposed would required the entire parcel to be zoned as “M-1”. The community proposes
a net density of 18.2 units per acre, which aligns with the proposed comprehensive plan
amendment, however no zoning classification that currently exists in the City of Lakeville
would align with this planned land use. The developer will continue to work with staff to
request a zoning text amendment to allow for the zoning designation of “M-1” to allow the
proposed buildings type, density, and other appropriate changes.
E. Conditional Use Permits
The proposal as described in “Narrative - C. Development Concept and Character” requires the
approval of five conditional use permits:
1. Exterior building materials including vinyl siding per provision of Section 11-61-25.
2. Increase in minimum floor area per dwelling unit of one bedroom units to accommodate the
proposed modern, open
concept layouts. 11-17-
13B. (see table)
3. Increase to Max unit mix of
dwelling units from 10% to
11% (see table)
4. Total parking reduction to
1.75 from 2.5 spaces per unit per Section 11-19-13. This falls in line with Continental’s
experience and actual parking metrics across its entire Midwest portfolio (1.77 spaces per
unit average across 18 communities). In addition, the Institute of Transportation Engineers
(ITE) identification of average per period parking demand of 1.23 vehicles per dwelling unit
with the range of peak parking demand being between 0.59-1.94 vehicles per dwelling unit
for Suburban low-rise multifamily.
5. Per Section 11-23, CUP to allow three 32 sq. ft. multifamily monument signs each at a height
of 5.5 feet and 30 sq. ft. of building signage at the front of the clubhouse per the enclosed
“Authentix Concept Signage”
Our residents are typically young adults or empty nesters with above average incomes.
• 48% of residents are 20 ‐ 34 years old
• 21% of residents are 50+ years old
• Only 9% of residents are school age children (age 5 ‐ 18)
• Residents have a median household income of $75,400, as compared
to the USA median household income of $60,500
• Residents have a per capita income of $50,200, as compared to the
USA per capita income of $33,000
Income
Age
Gender
Households
Where Our Residents Work
Education Finance/Insurance Management
Manufacturing Real Estate Service Industries
Health Care Technology Police & Fire Department
Median Household Income $75,400
Female 47%
% Age 50 ‐ 65 15%
Per Capita Income $50,200
% Age Under 20 11%
% Pre‐School Age Children (0‐4)
% Age 20 ‐ 34 48%
% Age 35 ‐ 49 19%
1%
Average Household Size 1.9
Male 45%
% Age Over 65 6%
% School Age Children (5‐18)9%
Average Age 35
Median Age 31
Average Household Income $93,800
Number of Apartment Communities 56
Number of Households 12,786
Who Lives in Continental's Communities
September 8, 2020
Number of Residents 23,870
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051‐3310 • Telephone: 262.502.5500 • Fax: 262.502.5522
Estimated Annual Spending by Residents
Authentix Apartments (Lakeville, MN)
Minneapolis-St. Paul-Bloomington, MN-WI MSA
January 18, 2021
Avg. Annual
Expenditure
Apparel and Services 2,608$
Computer 248$
Entertainment & Recreation 3,960$
Financial 3,490$
Food 11,383$
Health 708$
Home 21,809$
Household Furnishings and Equipment 1,665$
Household Operations 2,210$
Insurance 9,063$
Transportation 7,176$
Travel 2,161$
Total Average Annual Expenditures per Household 66,481$
LESS "Homeowner Expenses"
Mortgage Payment and Basics (11) 12,739$
Maintenance and Remodeling Services 2,720$
Maintenance and Remodeling Materials (12) 598$
Lawn and Garden (16) 568$
Subtotal 16,626$
Subtotal - Annual Expenditures per Renter Household 49,856$
Excluding Rent
Average monthly rent at Authentix 1,460$
Plus Average Annual Rent 17,520$
Total Annual Expenditures per Authentix Household 67,376$
Total Apartment Homes in Authentix Community 288
Total Households (95% occupancy) 274
Total Residents (avg. household size of 1.9) 520
Total Annual Expenditures by Authentix Households 18,400,000$
Source: Continental Properties analysis, ESRI 2019 "Retail Goods and Services Expenditures" report
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500
Conceptual Review | Authentix Lakeville | January 20, 2021
Lakeville Market Analysis
______________________________________________________________
LOCATION
Continental’s Market Research team has identified this specific location, and the City of Lakeville as a
desirable location for an Authentix community for a variety of reasons. First, being its proximity to major
vehicular thoroughfares. Second, the City of Lakeville offers a plethora of amenities, including a variety
of nearby fast and casual dining options, grocery options, and other shopping choices. In addition, the
City of Lakeville offers highly rated schools and desirable quality of life which, coupled with Lakeville’s
high rate of population growth, creates a significant demand for ANY housing type. Specifically, in the
vicinity, local employment expansion, rising home ownership costs, and absence of new, affordable
rental housing, create preferred conditions for an Authentix community.
WHY NOT COMMERCIAL?
Market Conditions – Commercial – General and Local
1. The U.S. as a whole is experiencing a dip of in absorption of retail space of 19.2M SF of retail
space, spurred largely due to the growing number of retailer bankruptcies and store closures.
This equates to a 329.9% decline year-over-year.
2. Every retail type and market experienced a negative absorption in the past year.
3. In Q3 of 2020 - Total retail completions declined to less than 6 million SF (down 44% year-over-
year) the lowest quarterly total ever recorded. A review of the total retail completions over the
past 10 years shows a trend of decline since Q1 of 2016.
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500
Conceptual Review | Authentix Lakeville | January 20, 2021
4. A surge in bankruptcies will yield a large influx of vacancies, there have been 56 bankruptcies
filed by major retails so far this year (89.3% of which have occurred post-COVID). 7,800 stores
have been announced as closing as a result.
5. In addition – online shopping continues to disrupt brick and mortar retail shopping,
compounded with COVID related influences, an unprecedented number of shoppers have opted
to utilize online and pick up services.
6. Available Land: attached is a map of Vacant Commercial Zoned Parcels in the City of Lakeville.
+/- 500 acres of vacant zoned commercial land exist in the City of Lakeville, with a large majority
existing in the vicinity of the project - near the intersection if I-35 and 210th Street. Meanwhile,
Commercial development projects per year in the City of Lakeville follow national trends and
have been decreasing (on average) since 2015.
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500
Conceptual Review | Authentix Lakeville | January 20, 2021
WHY MULTIFAMILY?
Residential Demand in the Market, and Submarket
1. Minneapolis Metro
a. The 5Y historical average of Supply and Demand shows a balanced relationship, with a
supply of 4,814 units, and a demand of 4,310 units and an absorption rate of 1.12.
b. The 1Y forecast predicts the Supply to slightly outpace demand (Supply of 8,713 units vs.
Demand of 6,186 units).
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500
Conceptual Review | Authentix Lakeville | January 20, 2021
2. Burnsville/Apple Valley submarket
a. Supply has outpaced demand in the submarket up until the last 2 quarters. Q3 and Q4
of 2020 experienced a sharp increase in Demand, see below:
5Y Historical Avg. 2020 Annual Avg. Q4 2020 Annual
Supply 359 605 816
Demand 324 488 857
Absorption 1.10 (favorable) Not available 0.95 (favorable)
W134 N8675 Executive Parkway • Menomonee Falls, WI 53051-3310 • Telephone: 262.502.5500
Conceptual Review | Authentix Lakeville | January 20, 2021
3. Lakeville Proper
a. The City of Lakeville has seen a number of communities developed in recent years,
including Continental’s Springs at Lakeville. As seen in the attached Map of Recent
Multifamily Developments Near Commercial/Retail Areas, the location of the proposed
community, is a substantial distance from any of these properties, and when compared
to the Vacant Commercial property Map, is in an area that is void of substantial
Multifamily development opportunity.
b. Continental’s Springs at Lakeville has experience fairly strong performance when
compared to similar Continental Managed properties, experiencing a lease up pace of
16 units/month, compared to 14.8 move-ins per month at Springs at Cobblestone Lake,
located in Apply Valley, MN.
c. Given the absence of Multifamily development in the vicinity, and differentiation
between the proposed Authentix Community and Continental’s Springs brand – it is
expected the proposed community will satisfy a pent up demand for attainable, modern
housing in the area.